What happens when you pay off your loan earlier?
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gerhardt
Apprentice
Joined: 13 Dec 2008
Posts: 1
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 Posted: 05/12/09 - 10:21 Post subject: |
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| I'm in need of borrowing 10000 pounds. I considered some offers of unsecured loans with a few lenders. There is possibility that I could repay the loan in several months but it's not certain. What happens when you pay off your loan earlier? Would would you advise me to do? Thank you! |
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angus
Apprentice
Joined: 08 Sep 2005
Posts: 1
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| Posted: 06/09/09 - 23:56 Post subject: |
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| Loan offers are different with different lenders. That also includes early settlement rules. Some loan offers would include a clause about paying penalties for early repayment because you are changing the deal. Most of lenders have a different policy. You are allowed to repay the loan earlier without any fees, but you must repay the interest that would be paid in regular time of loan. That means that even if you finish loan payment earlier interest would be calculated like it was never shorten. There are no benefits of early repayment when it comes to loans, it could just cost more. Another option could be getting a short term loan. There are offers provided by highly rated lenders and they are very convenient for your situation. You could borrow 10000 pounds and return them in couple of months without any problems and with just a bit of interest. If you would be sure that you would get the money in a few months then I would suggest that. In this case, when you are not certain, it would be bad to get a loan which you couldn't repay. |
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